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This is an important point by @Femi_Sorry. It’s not about not being able to do business, it’s about competitiveness in the new trading environment and frictions introduced getting in the way of reaching our marketplaces. /thread #CPC2019 #mondaythoughts
Tariffs add costs.
Extra regulation adds costs.
Supply chain delays add costs and tie cash up as bigger stocks to manage the expanded lead time required to get finished goods into hands of customers generating turnover and profit.
Extra regulation adds costs.
Supply chain delays add costs and tie cash up as bigger stocks to manage the expanded lead time required to get finished goods into hands of customers generating turnover and profit.
Incidentally that’s at a time of year - now- where many industries are already stocking to the rafters for Christmas trade and intrinsic seasonal pressure on delivery capacity. The pressure on warehouse space is already hard to manage.
Tying up this cash is not without consequences, it reduces opportunities for generating extra sales or investment in people. There is only so much cash available even for the biggest of companies, it’s all relative. Unpredictable currency fluctuations can eat into margins too.
So, what does this all mean?
Prices have to rise and turnover is extremely vulnerable to a strong hit by competitors who now have an edge over the British business they never had before.
Prices have to rise and turnover is extremely vulnerable to a strong hit by competitors who now have an edge over the British business they never had before.
Alternatively if it’s believed the customers won’t pay higher prices, costs elsewhere have to be squeezed- for many businesses this means looking at payroll or doing more for less by automating more - that translates to job losses whichever way you slice it.
Or price pressure is put on all their suppliers who may not directly trade with the EU but will now be affected regardless. For a powerful business, smaller suppliers will have to look at their costs in turn to keep the business.
Or it’s a combination of the three. That’s the way it works. Adding barriers adds costs which in these days of fierce competition and slim margins and high consumer expectations of high quality at low prices can tip the balance to a bad outcome for owners and staff alike.
That’s why leaving the SM and CU, the biggest trading bloc in the world is absolutely crazy if you want a thriving business and industry sector. Don’t say we didn’t warn you. Everyone will feel the consequences not just remain or just leave voters. /end
#66Million
#66Million
P.s. I would also suggest business is smart and tenacious but even after 3 years of thinking, we do not see queues of companies on the tv declaring exciting plans for a post brexit world, we only see talk of contingency and damage limitation and the drip of exodus #StopBrexit 
